Trade Setup for Dec 3: NIFTY50 sustains positive momentum, confirms bullish harami pattern

Asian markets @ 7 am

• GIFT NIFTY: 24,427 (+0.02%)
• Nikkei 225: 39,129 (+1.60%)
• Hang Seng: 19,585 (+0.18%)

U.S. market update

• Dow Jones: 44,782 (▼0.2%)
• • S&P 500: 6,047 (▲0.2%)
• Nasdaq Composite: 19,403 (▲0.9%)

U.S. indices closed in the green on Monday, starting December on a positive note. Investors will be closely watching Friday's jobs report for November, a key input for the Federal Reserve ahead of its meeting on 17-18 December.

NIFTY50

• December Futures: 24,428 (▲0.5%)
• Open interest: 4,71,620 (▲3.7%)

The NIFTY50 index recovered majority of its Thursday’s losses and extended the positive momentum for the second session in a row. The index also confirmed the bullish harami pattern on the daily chart and closed above the high of the bullish reversal pattern.

A bullish harami is a two-candlestick pattern which consists of a large bearish candle followed by a smaller bullish candle. The body of the smaller candle is entirely within the range of the previous candle.

The short-term technical structure of the index has turned positive with immediate support around 23,800 zone. Meanwhile, the immediate resistance for the index is around 24,350. If the index reclaims the resistance on the closing basis, it may extend the gains till 24,500 zone.

The open interest data for the 5 December expiry has highest put base at 24,000 strike, suggesting support for the index around this zone. Conversely, the call base was seen at 24,800 and 24,500 strikes, indicating that the index may face resistance around these levels.

SENSEX

• Max call OI: 83,000
• Max put OI: 75,000

The SENSEX also sustained its positive momentum for the second day in a row, confirming the bullish harami pattern on the daily chart. The index also recalimed its 50 day exponential moving average (EMA), indicating continuation of the positive momentum.

On the daily chart, the index faces immediate resistance near the 80,500 zone. A sustained close above this level could potentially extend the bullish momentum toward the 82,000 mark. Conversely, if the index closes below the 21 EMA, it may signal further weakness, with a downside opening upto the 78,200 zone.

The open interest (OI) data for the 6 December expiry shows substantial call OI concentration at the 80,000 and 80,500 strikes, suggesting that the index may encounter resistance around these levels. On the other hand, significant put OI at the 79,500 and 79,800 strikes indicates strong support for the index in this range.

FII-DII activity

Stock scanner

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price. Source: Upstox and NSE.

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